Airline wins tax battle with koh Samui

WEDNESDAY, APRIL 25, 2012
Airline wins tax battle with koh Samui

Bangkok Airways yesterday won its court case against Koh Samui Municipality, enabling it to retrieve household tax payments worth Bt117 million.

The municipality started pressuring for household tax payments after the airline’s launch of a property fund in 2007. The fund raised Bt9.3 billion for the 449 rai (72 hectares) of land used by Samui Airport. The airline later struck a 30-year lease with the fund for the airport’s management.

The airline insisted that the property fund was part of fund mobilisation, not property leasing, whose returns would be subject to household taxes.

In its verdict, the Central Tax Court agreed with Bangkok Airways and ordered the municipality to return the four years of tax payments plus statutory interest to the airline.